REPORT TO AUDIT COMMITTEE
SUBJECT
Title
Action to Accept Report of Whistleblower Hotline Activity for Fiscal Year 2023-24
Report
BACKGROUND
Per Section 909 of the City Charter, and SCCC Section 2.29.010, the City Auditor's duties and responsibilities include conducting in-depth financial and performance audits, overseeing the City's performance management system, auditing and approving all bills, invoices, payrolls, demands or charges against the City government before payment and, with the advice of the City Attorney, making reports to the City Council as to the regularity, legality and correctness of such claims, demands or charges. The City Auditor's Office conducts its work under the auditing standards prescribed by the Institute of Internal Auditors (IIA). The IIA International Standards for the Professional Practice of Internal Auditing (Standards) requires the City Auditor to periodically report to the Audit Committee on the internal audit activity's performance relative to the Audit Work Plan.
DISCUSSION
In January 2022, the City Council approved the City's first Fraud, Waste, and Abuse Policy (Fraud Policy). The policy defines unacceptable behaviors, assigns oversight responsibility, and provides direction for reporting suspected fraud. Together with the City's Code of Ethics and Values, a fraud policy raises awareness and helps the City set a tone of oversight and commitment to combating fraud and corruption.
With the acceptance of the policy, and pursuant to California Government Code Section 53087.6, the City Council authorized the use of a whistleblower hotline that allows for anonymous reporting of suspected fraud, waste, unethical or illicit activity. After a competitive procurement process, the City Auditor's Office implemented a third-party whistleblower hotline "Speak Up Santa Clara" in September 2022. As part of the Fraud Policy, the Auditor's office reports to the Audit Committee a summary of all claims received. If a claim is subst...
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